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3/11/2011 7:18AM

Euroview: Japanese Earthquake May Not Hit Economy

We don't know the full scale of the Japanese earthquake. But to judge by Kobe in 1995, the markets will initially take it badly but then rebound when investors see the rebuilding boosting economic growth.

This transcript has been automatically generated and may not be 100% accurate.

... I ... yet ... the scale of damage done by two parents are employed ... but investors will be asking themselves what the likely impact could be on the Japanese economy ... the cost of history to refer to ... the Kobe earthquake in January nineteen ninety five killed more than six thousand people in calls to Rumba hundred billion ... dollars worth of damage ... the equity market Dmitriev didn't react much but then sold off heavily about a week later which triggered the collapse of Barron's Bank ... by Midsummer the meek I was down around twenty five percent on word started the year ... by the end of the year though it had not only recovered its losses The was the Palm Pre or rate levels ... so you might conclude that option for Schalk natural disaster zone that set the bar for colonies ... and that's with academics and generally argued ... not to ... post disaster rebuilding effort is good progress ... in fact when paper published a decade ago found that countries with frequent natural disasters tend to have more human capital ... is better Prot in productivity and higher rates of GDP growth ... why ... because it's about natural disasters force an upgrade of capital equipment ... many works in a sense the post-war rebuilding is also set to be deferred colonies ... but what these constellations Mincer and intangible costs like this people ... on the other hand maybe that's what governments offering deep economic crises conspired to blow up